• D.H.THAVAMALAR

The financial crisis refers to ‘the loss of confidence in a country`s currency or other financial effects causing international investors to withdraw their funds from the country’. Economists have offered theories about how financial crisis develop and how they could be prevented. Even then, financial crisis is still a pain staking phenomenon around the world. The present recession in the entire world is one such which occurred in the past. The industrially advanced countries are also now officially in recession, having had two consecutive quarters of negative growth in recent past. The impact of the financial crisis is also felt by the developing economies as well and is observed as slow down in the growth of various sectors. This leads to loss of job in both developed and developing countries. In America, one in four Americans did not have a job and its severity mounds up to one in ten. Thus, the recession this time around is global and almost every working person is feeling its impact. Not only jobs, but its repercussions are felt by every individual in terms of his savings and investments due to insecurity in job. Thus it becomes imperative to discuss and to provide guidelines in overcoming these deep losses in day to day livelihood. At first, it calls for changes in the investment and spending patterns, as well as some adjustment in the current life style, but these changes will pay off. These include repayment of loans, health Cover, Life insurance and Lifestyle change. Apart from this some simple strategies may be followed for the payment of insurance policies which includes skipping premium for 3year old policy, taking loan on policy to pay premium, convert it to a paid –up policy and change the payment option. The next strategy is to cut down the budgeting expenses which includes cut down on luxuries, shift to a smaller house , unlock value of fixed asset, altering the investment and savings by exiting from stock completely, reduce equity exposure to 10% and sell shares and buy index funds. The last strategy is to extend the tenure of the loans or convert it to a step-up loan and if the problem is not yet solved, the loans may be foreclosed and the asset may be sold out.

Financial crisis, recession, insecurity

"TECHNIQUES FOLLOWED TO SUSTAIN ILL EFFECTS OF RECENT FINANCIAL CRISIS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.727-730, June 2019, Available :http://www.jetir.org/papers/JETIR1907B28.pdf

"TECHNIQUES FOLLOWED TO SUSTAIN ILL EFFECTS OF RECENT FINANCIAL CRISIS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp727-730, June 2019, Available at : http://www.jetir.org/papers/JETIR1907B28.pdf